What is a declaration of succession?
Declaration of succession is a mandatory requirement carried out by heirs (or a legal representative) to an inheritance within 12 months of the testator’s date of death. The declaration is submitted to the Agenzia delle Entrate (equivalent to the American IRS, Internal Revenue Service) or to a qualified financial assistance intermediary, such as the Italian Centro di Assistenza Fiscale (CAF).
In cases where there are multiple heirs to the estate, only one submission declaring succession is required. If real estate is involved, recording the transfer of deeds in a land registry is also necessary, and involves a series of taxes. The declaration of succession is a legal obligation, and if the 12-month deadline is missed, the heirs may be subject to different types of sanctions.
Exemptions from Declaring Succession
If the estate value is less than 100,000 euros and there is no real estate involved, the declaration of succession is not required.
Renouncing one’s inheritance is also an option provided by Italian law. In these cases the heir automatically renounces both the possessions and debts held by the testator. Those renouncing their inheritance are no longer referred to in the succession, as if they had never been called on to receive it. However, this renunciation must take place comprehensively, without conditions. There is no chance, for example, of renouncing only part of the inheritance, such as debts, while holding on to other assets.